Arizona Tribune - Stock markets rise after holiday break

The Dow Jones Industrial Average led gains on Wall Street, with the tech-heavy Nasdaq and S&P 500 flat near midday deals.

While US indices returned to work on Tuesday, European markets were only back on Wednesday, with London leading the way as it closed 0.4 percent higher.

Hong Kong also returned from a long break to close 1.7 percent higher.

"The ongoing optimism surrounding the prospect of central banks initiating interest rate reductions in 2024, with multiple cuts expected next year, continues to propel shares higher," said Walid Koudmani, chief market analyst at XTB trading group.

Market sentiment has been largely positive since the Fed's most recent monetary policy meeting, when it indicated the rate-hike cycle could be nearing its end as global inflation slows.

"The prevailing sentiment suggests a 'risk-on' environment in US markets, with renewed optimism focused on anticipating swifter and earlier rate cuts," said Stephen Innes, managing partners at SPI Asset Management.

But Ipek Ozkardeskaya, senior analyst at Swissquote Bank, warned that "the market optimism is overstretched" and that "the Fed will probably cut rates but not at the speed that's been currently priced in".

Global markets were also positively affected by the so-called "Santa Claus rally", which has historically seen stocks tick higher -- albeit at thinner volumes -- during the end-of-year holiday period.

"Once the Santa high fades, the hangover will hit," Ozkardeskaya said.

Elsewhere on Wednesday, oil markets reversed last week's gains, mainly owing to fears regarding the possible regional spread of the conflict between Israel and Hamas.

- Key figures around 1640 GMT -

New York - Dow: UP 0.2 percent at 37,617.93 points

London - FTSE 100: UP 0.4 percent at 7,724.95

Paris - CAC 40: FLAT at 7,571.82

Frankfurt - DAX: UP 0.2 percent at 16,742.07

EURO STOXX 50: UP 0.2 percent at 4,528.38

Tokyo - Nikkei 225: UP 1.1 percent at 33,681.24 (close)

Hong Kong - Hang Seng Index: UP 1.7 percent at 16,624.84 (close)

Shanghai - Composite: UP 0.5 percent at 2,914.61 (close)

Euro/dollar: UP at $1.1117 from $1.1042 on Tuesday

Dollar/yen: DOWN at 141.96 yen from 142.34 yen

Pound/dollar: UP at $1.2800 from $1.2725

Euro/pound: UP at 86.86 pence from 86.77 pence

West Texas Intermediate: DOWN 1.7 percent at $74.29 per barrel

Brent North Sea crude: DOWN 1.6 percent at $79.80 per barrel

burs-lth/yad

M.King--AT